The two countries signed this week a five-year extension of their fishery agreement that expired last December. They are expected to hold further talks to thresh out critical issues such as the re-flagging controversy that has prolonged the completion of a mother bilateral trade agreement.
Marfenio Tan, president of the Socsargen Federation of Fishing and Allied Industries Inc. expressed confidence that the Philippine tuna vessels won’t be coerced into carrying Indonesian flags.
"The Indonesian delegation indicated that there is still a lot of room for discussion with regards to the re-flagging issue. We could work out a compromise so that we don’t‚ lose our fleet," said Tan.
Indonesia is expected to flex its muscles on the re-flagging issue because the local tuna processing industry here gets about 65 percent of its supply from Indonesian waters.
Requiring Philippine tuna vessels to re-flag upon reaching Indonesian waters, would put the local tuna processing industry at a grade disadvantage.
"While it would be easy to accede to re-flag our tuna vessels so that we would be allowed to catch tuna, the fish will then be treated as imported fish upon reaching General Santos which will be subject to import duties and tariffs. That would definitely affect prices and subsequently affect our exporters’ competitiveness in the global market," said Tan.
Moreover, labor costs will also increase because the tuna fishermen or seafarers will be treated as overseas Filipino workers and their operators will have to comply with international standards for compensation of these skilled workers, said RD Group of Companies executive vice-president Ritche C. Rivera.
Rivera, whose processed tuna company Philbest, is now considered as one the top three tuna exporters in the country, said local tuna supply will be curtailed if Indonesia insists that 80 percent of tuna catch should land in Indonesian ports with only 20 percent of total catch allowed to land in General Santos.
"Indonesia wants to gain more from the tuna fishing agreement and may want to further develop their still fledgling tuna processing industry and thus, require the fresh tuna supply," noted Rivera.
Under existing joint fishing ventures with Indonesians, foreign vessels should not just carry their national flag but also the flag of Indonesia.
Indonesian Minister of Marine Affairs Freddy Numberi who led the Indonesian contingent in the signing ceremonies said his government will be very flexible in the reflagging issue.
The fishing agreement which forms part of the mother bilateral trade agreement that is expected to be concluded also this year, is seen to further boost the Philippines‚ position as one of the top tuna producers and exporters of fresh frozen and processed tuna in the world.
This city, recognized as the tuna capital of the Philippines, hosts six of eight tuna canneries in the country and more than 15 processing plants, with more than 80 percent of production shipped to the European Union, Japan and the United States.
The new fisheries cooperation agreement expanded the coverage of the old deal to include new areas of cooperation in aquaculture; marine capture fisheries through joint venture; post-harvest, fish processing development and marketing; coastal management and development; marine fisheries conservation; combating illegal, unreported and unregulated fishing practices; research activities; education and training and environmental protection.